Bridges

This is an appeal by defendant Continental Casualty Company from a judgment in favor of plaintiff upon a broker’s bond given by appellant under the provisions of the Corporate Securities Act (Stats. 1917, p. 673), as surety for defendant Price. The evidence showed that on September 29, 1925, respondent Bridges delivered to one Ormond, as agent for Price, 210 shares of capital stock of National Automatic Music Company, to be exchanged for 336 shares of Monolith Portland Cement Company stock. Subsequently Price admitted to Bridges that he had sold his Music Company stock and had not procured the Cement Company stock, and on November 19, 1925, Price persuaded respondent to take his (Price’s) promissory note for the value of the stock, payable twenty-seven days after date. The note was never paid, and after its maturity this action was brought on the original obligation and appellant was joined as a defendant upon its bond. Judgment followed against both defendants.

The bond here in question recites that it is given as “required under the provisions of paragraph 3 of section 5 of said act (Corporate Securities Act) as amended in 1923.” As a matter of fact, prior to the execution and…